Equity Scholar Weekly Newsletters

Equity Scholar is a market-leading financial education service for traders and investors alike. Built to be the best, Equity Scholar offers a full range of educational products and services that provide lifelong learning and support to those seeking improvement in their trading and investing performance.

Monday, April 29, 2013

Current Events:Last
week's strong 5-day rebound provided an abrupt end to sell off that occurred at
the year-to-date high in early April. The rally has rekindled confidence in
even the weariest of investors as the steady upward climb which began in late
November continues.

What to Look for This Week

Plenty of earnings are scheduled to be announced this week
to keep investors engaged throughout. Popular names such as Facebook, Allstate,
and Mastercard lead the way in what should be a busy week.

News Affecting the Markets

Retirees and conservative investors alike are expected to
reconsider the once very popular decision to stash money in gold. The commodity
has fallen nearly $400 from its 52-week high of $1,803 to $1,420, which has
forced many to question if the risk is worth it. While the volatility of gold
in past years has worked in favor of bullish investors producing lofty price
levels quickly, the sharp decent is likely to force many to exit just as fast.

Smart Investing

Think of Trading as a Business:In other businesses you find a market, you
learn a skill or develop a product, and then expand upon that idea until it is
superior to your competitors. Trading is the same – it is a business –a war for
survival, and if you want to be financially secure you will have to sacrifice,
in the exact same manner as a shrewd business person. As in conventional
business practices you have to be patient, focused, disciplined, committed,
hard working, and in complete control of your business and oneself. To be
successful in your equity trading business you can’t control the market, all
you can do is identify the trend and go with it to profit. That’s not to say
that you can’t be confident with your trading, but you need to realize early in
your career that it is perfectly acceptable to be wrong as long as you stick to
your exits and apply discipline.

Monday, March 25, 2013

Current Events:After
a down week, U.S. financial markets are seeking a jolt of positive news to keep
near historic levels. Such a boost will likely come early in the week out of
Europe as Cyprus has tentatively reached an agreement to receive key financial
aid in an effort to avoid a meltdown. Early indications show the euro and U.S.
stock-index futures rallying, following a sharp rise in Asian stocks as a
result of the bailout.

What to Look for This Week

A ton of housing data is scheduled to be released this week,
which will allow investors to gauge the temperature of the housing market. Not
much excitement is expected this week from earnings though, as just a few big
names are scheduled to announce, including Dollar General, Red Hat, Paychex,
and GameStop.

News Affecting the Markets

The European Central Bank, the European Commission and the
International Monetary Fund (collectively known as the Troika) came to the
rescue Sunday bailing out the tiny island nation of Cyprus by securing 10
billion euros of aid. The proposed deal, which was leaked by European Union
officials to Reuters, would include the closure of the country’s second-largest
lender, Popular Bank of Cyprus or “Laiki Bank,” with deposits under 100,000
euros to be shifted to the larger Bank of Cyprus, while deposits over that
amount would be frozen and used to pay off debts. Additionally, a 40% haircut
on Bank of Cyprus depositors holding more than 100,000 euros in their accounts
is reportedly also included in the structured deal designed to alleviate the
country from its likely financial doom.

Smart Investing

Budget Analysis:Investing and/or trading should involve the use of disposal income. But
getting a hold of disposable income isn't easy for most. Thus, it may be
prudent to create and maintain a budget. Start by reviewing your income and
expenses. This will be easier if you get in the habit of tracking the money you
spend using a paper ledger or with your computer. Remember to account for any
debt expenses you may have, such as credit card and loan payments and include
changes you anticipate such as a pay raise or a new car payment. Think about
ways to maximize your income and minimize expenses. If you need more income,
you may decide to work a few extra hours at a part-time job in addition to your
current job. Look for ways both large and small to spend less throughout the
year. Each income and added savings will quickly contribute to a larger pocket,
which will give you a greater opportunity to participate in investments.

Tuesday, March 19, 2013

Current Events:U.S.
indexes reached new highs for the year last week, but recent news out of Europe
has caused investors to worry. Highly debated decisions regarding the handling
of the financial crisis in Cyprus could now jeopardize the long-term political
future for key players in the euro zone. All of which has slowed down, at least
for the moment, the steadily rising U.S. market.

What to Look for This Week

Just a few big names report earnings this week as the
quarter approaches its end. Famous brands such as Nike, General Mills, and
FedEx are set to lead the way. Computer software giants Oracle and Jabil
Circuit are also likely to catch attention from investors this relatively quiet
earnings week.

News Affecting the Markets

The latest shoe to drop in the euro-zone saga is Cyprus. The
little known land has become the epicenter of the euro-zone financial crisis
mostly in large part to recent proposals to rectify the issue at hand. Under a
rescue deal announced Saturday, international creditors agreed to provide 10
billion euros to the Cyprus. In return, the country has plans to sell
government assets, raise corporate-tax rates and impose a tax on interest
earned in its banks. But most controversially, the aid package also requires a
one-off levy on deposits in all banks in Cyprus.

Smart Investing

Tape Reading:Following price action can be very confusing.
One of the main ways to follow price action is to examine the price compared to
an indicated point. Many traders use pivot points because it has shown consistent
results for those experienced. This is the simplest way to tell if your
position is approaching or moving further away from a specific point. This
lends itself to the trader getting a feel for what’s happening in the market
once their position is initiated. The indicated point more than likely is your
entry price. Some points have more importance such as opening price, new highs,
or new lows. So when examining price action, you want to acknowledge how fast
it’s moving and how much it’s gone up or down. To evaluate this you need two
points: your indicated point and the price it’s trading at the time.

Monday, March 11, 2013

Current Events:Last
week the U.S. markets recorded another very strong week in which new highs and
new levels were hit. This week will shed light on the consumer pulse with various
retails sales data scheduled for announcement. Such data will provide key
insight on whether consumers are content enough with current stock and housing
prices to confidently open up their wallets in ways not seen since 2008.

What to Look for This Week

A handful of retailers, including Aeropostale and Dick's
Sporting Goods, are the majority of what is left to report earnings this
quarter. Though it is a light weak from an earnings perspective, investors will
be very interested how the week unfolds as record-breaking market highs are on
the line each day.

News Affecting the Markets

Infamous economist Nouriel Roubini, credited for predicting
the global financial crisis in 2006, has once again publicly predicted a market
correction. According to Roubini, higher taxes and spending cuts will hinder
U.S. economic growth this year leading to major market correction in the second
half of 2013.

Smart Investing

Short-term vs. Long-term:In a statement attributed to Warren Buffett, he describes the stock
market as a voting machine in the short term and a weighing machine in the long
term. So in the immediate term, the machine just makes a whole lot of noise.
Most of the time, you should not really pay attention to stock prices. Over the
long run, though, the price of a stock does get established. So you want to
keep your eye on the stock for a much longer period of time. Great products and
terrific sales precede great company reports. But since earnings reports are
only done quarterly, most investors wait for the reports and then buy or sell
the shares of the company. Smart investors watch what consumers buy, and then
jump in during that lag time before the reports are released. Over the long
run, one thing is certain: Good companies produce good products. And if those
companies are run well and their products are bought and enjoyed by consumers,
their stock prices will go up. So keep an eye out for great companies with
terrific products and you're going to find a few winners.

Monday, March 4, 2013

Current Events:Though lackluster news has been plentiful of late, little has slowed
down U.S. equity markets as indexes tease with record setting highs. The
unemployment rate to be released on Friday will be the next scheduled test for
the resilient market.

What to Look for This Week

A quite week is expected from an earnings perspective as the
quarter approaches its end. Most of the pillars across all industries have
reported this season and just a few key remaining announcements remain. Some
popular household names reported this week include Internet favorite Pandora
and grocery store chain Kroger.

News Affecting the Markets

Worries of a real-estate bubble in China has weighed very
little on the U.S. stock markets as the Dow Jones Industrial Average closed at
its second-highest level ever on Monday. To combat China's bubble fears
authorities late on Friday announced new property-buying restrictions,
including higher down payments and mortgage rates on second homes in cities
that have seen steep increases in property prices.

Smart Investing

Entering on Pullbacks:Most of the time entry and exit points are derived from support or
resistance levels in an individual stock that you are trading or, more broadly,
in the market itself. Another approach to entering a position is to be patient
and wait for a pullback in the market or the stock that is currently trending
up. Inversely, if the market, or your stock, is trending down, wait for an
adjustment. These corrections occur because the market and the stocks within it
do not just go straight up or down. As a result, there are many insignificant
pullbacks and adjustments that present good entry points. Therefore, determine
if the situation in front of you is a pullback/adjustment, or has the trend
simply come to an end.

Monday, February 25, 2013

Current Events:A
strong Friday helped the U.S. markets rebound from a poor two-day stretch that
left the Nasdaq and S&P 500 Index slightly down on the week, while the Dow
Jones Industrial Index managed to escape slightly positive.

What to Look for This Week

Retailers of all
types will be the talk this week as a long list of famous stores and brands
announce earnings, including Home Depot, Macy's, Barnes & Noble, Gap, and
Target. These announcements, coupled with home and vehicle sales, will provide
investors with key insight on past and future trends of consumers.

News Affecting the Markets

Congress returns to session on Monday, but much is to be
done as the White House and legislators face a deadline that is now just 5 days
a way, which would trigger automatic federal spending cuts beginning on Friday.
This deadline was initially set to trigger on January 1st of 2013, but was
pushed back to March 1st as lawmakers could not agree to a deal.

Smart Investing

Buying Straddles Prior to Earnings:Buying straddles is a great way to play
earnings. Many a times, stock prices gap up or down following the quarterly
earnings report but often, the direction of the movement can be unpredictable.
For instance, a sell off can occur even though the earnings report is good if
investors had expected greater results. The strategy when anticipating such a
case is to buy a straddle two weeks or so ahead of earnings. A straddle will
allow you to capitalize on the movement of the stock regardless of the
direction. Note that significant price movement is necessary for a straddle to
make money and thus is a common strategy during earnings and key announcements.
Ensure that you do your homework and identify stocks that have a history of gap
movements.

Monday, February 18, 2013

Current Events:Last
week's relatively stagnant performance in all three major U.S. indexes is
largely due to technical resistance as each sits at multi-year highs. It will
likely take some extraordinary news to generate investor interest to purchase
at these levels. If such a move lift occurs it could spark a motivating rally.

What to Look for This Week

Though most companies have already reported earnings for
this quarter some of the largest corporations in the world remain, including
Wal-Mart. American International Group (AIG) will likely draw a great deal of
press upon earnings on Thursday as the "bailed-out" company continues
its attempt to regain support.

News Affecting the Markets

Key decisions on the U.S. budget are likely to occur in the
next two weeks as the March 1 deadline approaches for lawmakers. Thus far, the
equity markets have seen little impact from this looming piece of legislature;
however, with indexes at multi-year highs uncertainty surrounding federal
spending cuts can be enough to tip the market south.

Smart Investing

Goal Setting:Setting
goals is not just about achieving success, but experiencing an enriching
journey while on the process of acquiring your goal. There is so much to be had
when you have set your goals in life. One of which is achieving
self-development. Setting goals is a sign of maturity in a person. Clear cut
intent will help develop motivation and forces you to practice some of the
important values in life like determination, perseverance and discipline.
Setting a goal will also give you a clear road map on which direction and will
enhance your self-esteem as you know what you want to achieve and how to get
there. Even though there is no guarantee that you will achieve every goal, what
matters most is the growing process that you will experience even as making
that journey that will enable you to take on similar or even better
opportunities.

Sunday, February 10, 2013

Current Events:Major
U.S. equity indexes all finished at or near the highs for the week on Friday
despite a roller-coaster type week. With Friday's strong finish the Nasdaq and
S&P 500 indexes are impressively at new highs for 2013.

What to Look for This Week

A relatively full plate of earnings announcements are
scheduled this week as popular beverage giants Coca-Cola and Pepsi lead the
way. The quarter has been quite the favorable one for the stock market as
corporations have been routinely reporting better than expected earnings due to
such low initial forecasts.

News Affecting the Markets

Investors will be eager to see how the market handles the
news of the devastating snow storm that hit the north east this weekend. Nine
states have reported a loss of electricity due to the poor weather conditions
which have impacted an estimated 660,000 customers. Highways were also effected
as abandoned cars littered the roadways.

Smart Investing

Buying a Franchise:Buying a franchise business is something that should always be
approached with a good deal of caution and research. You should make sure that
you scrutinize over every detail of the franchise you wish to purchase and make
sure a competent franchise attorney looks over ever document the franchisor
provides to you. By law, franchisors must provide the franchisee with the
proper documentation and numbers that will help you make your decision. It is
vital to conduct your own independent research on the franchise you wish to
join. After doing the research and crunching the numbers, you'll have a pretty
good idea whether this particular industry is right for you and if the
franchisor would be easy to work with. Do not jump into a franchise opportunity
without first doing your due-diligence to insure this venture will be
profitable and fun.

Tuesday, February 5, 2013

Current Events:US
indexes suffer their largest single-session loss of 2013 on Monday due to
concerns of reoccurring Europe issues. The big drop comes just as the Dow Jones
Industrial Index was ever so close of reaching all-time highs seen over five
years ago.

What to Look for This Week

Last week was a busy one for investors as 122 companies
reported earnings catapulting U.S. indexes to highs not seen in years. While
there are far fewer stocks this week, insurance favorites All-State and Aflac
are just some of the popular brand names that will gain attention this week
regardless of worries from governments overseas.

News Affecting the Markets

Spanish and Italian
debt yields surge on Monday sending U.S. stocks tumbling. Rattled investors
pushed bond yields higher in large part to new drama surrounding Spanish and Italian
scandals.

Smart Investing

Brokerage Deposits
and Withdrawals:Most brokers allow
their clients to deposit and withdrawal their funds with the simplicity of a
bank account. However, this should be verified and considered before opening an
account. If deposits and withdrawals can only be made through electronic
transfer it will almost certainly be at a cost to the investor. Free
withdrawals through a check in the mail are likely available, but this takes
time and might not meet your needs. Electronic transfers are instantaneous, but
costly. Another thing to consider is timing- some brokers require you to wait
3-5 days after a transaction before withdrawing funds. Some accounts come with
a Visa or MasterCard debit card that can be used anywhere these cards are
accepted to make purchases with the funds you keep in your account. Regardless
of the type of trader you are, it is important to consider how you will access
your funds once they are in the account before signing up with a broker.

Monday, January 28, 2013

Current Events: Last
week proved to be another strong week for the Dow Jones Industrial and S&P
500 indexes, backed by better than expected earnings from many corporations. This
was the first time in 5 years that the S&P 500 index touched the 1500 mark.
While Thursday's slide in the Nasdaq was enough to keep the index from
finishing the week on a high like its counterparts.

What to Look for This Week

The busiest week of
the fourth quarter is ahead as 122 of the S&P 500 companies are scheduled
to release earnings. Many investors are looking for a continuation of current
positive trends as many companies have reported better than expected earnings
this quarter, in large part due to very poor expectations from Wall Street.

News Affecting the Markets

Apple, the innovative
giant in the field of technology for over the past decade, suffered a
significant loss in value on Thursday as over 800,000 shares, worth roughly
$300 million, were quickly dumped. News from the tech leader in recent months
has not been promising as cuts in iPhone 5 manufacturing due to less than
expected demand has caused unforeseen weakness. The latest bit of bad news to
strike Apple comes from the trading community. Those in use of technical
analysis have now publicly noted the head and shoulders pattern that has
appeared, which has lead to speculation that more of a slide is to come.

Smart Investing

Retirement Income
Property Planning:If you purchase the
right property at the right price and on the right terms a rental property can
produce significantly more income than traditional passive investments. If you
plan to finance your purchase with a mortgage, you'll need to take action
before you retire. Mortgage lending guidelines typically require applicants to
be employed and have at least two years of steady employment history in the
same occupation. Lenders require a substantial down payment, typically 30% or
more, if you won't be occupying the property. If you don't have the cash to
make such a large down payment, consider using your IRA funds. All equity
growth and income from rental receipts will grow inside your IRA tax-free.
Purchasing the property with funds inside a Roth IRA, on which you've already
paid taxes, means all your earnings and equity can grow tax-free perpetually.
Owning income-producing property can be a viable resource to provide retirement
income and leave a legacy to pass on to your beneficiaries, but it's important
to have as much knowledge as you can going into the purchase so you have
realistic monetary expectations.

About Me

Equity Scholar is a market-leading financial education service for traders and investors. Built to be the best, Equity Scholar offers a full range of educational products and services that provide lifelong learning and support to those seeking improvement in their trading and investing performance.
Our online courses on Equities, Investing, Options, and Forex combine innovative technology with comprehensive trading and investing strategies designed to improve traders of all experience levels. With in-depth classes, live trader chat rooms, and top-rated customer support, Equity Scholar is on a mission to provide our members the best brand in financial education.